Orders line up for Taiwan’s steel structure companies

台灣鋼構公司訂單紛至沓來

TAIPEI (Taiwan News) — Taiwan’s steel structure industry is showing signs of renewed momentum as global interest rate cuts begin and demand from high-tech factory construction and public infrastructure projects continues to grow.

Steel structure engineering, which plays an important role in Taiwan’s metal manufacturing sector, refers to construction projects that use steel as the main structural material. Leading companies including Tung Ho Steel, China Steel Structure, and Evergreen Steel all reported solid earnings last year, according to CTEE and the Industry and Technology Intelligence Service.

Over the past two years, Taiwan’s broader steel industry has faced weak market conditions. Steel structure companies, however, continued to perform relatively well.

Industry observers say the three major companies already have projects lined up, with work scheduled through the fourth quarter of this year and in some cases into the first quarter of next year. Analysts expect profitability to improve this year.

Tung Ho increased profits by 5.38% last year. Its earnings per share, a measure of how much profit a company earns for each share of stock, reached NT$6.47 (20 cents).

China Steel Structure reported earnings per share of NT$3.19, with both revenue and profits improving from the previous year. Meanwhile, Evergreen recorded revenue of NT$11.51 billion in the first three quarters of last year and earnings per share of NT$7.36, both higher than the same period a year earlier.

Evergreen remains one of the most profitable companies in Taiwan’s steel structure sector. In addition to benefiting from public infrastructure projects, the company has also seen stable operations from its investment in Shin-Rong Enterprises, whose waste-burning facilities recently completed upgrade work that improved operating efficiency.

For Tung Ho Steel Enterprise, rising prices for H-beam steel — a type of steel beam commonly used in building construction — and improved performance at its Vietnam plant helped boost fourth-quarter results beyond expectations. Market analysts say Tung Ho’s electric arc furnace production also produces fewer carbon emissions compared with traditional steelmaking methods.

As the European Union prepares to implement the Carbon Border Adjustment Mechanism, which will place carbon-related charges on certain imports, Taiwan is also moving closer to introducing carbon fees. Lower-carbon steel products could see higher demand, particularly in export markets and green building projects.

China Steel Structure is also seeing continued demand, supported by expansion plans from semiconductor manufacturers and urban redevelopment projects that include new high-grade office buildings across Taiwan. Analysts expect the company’s profitability to improve this year as it takes on more projects with better returns.